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777dan777 [17]
3 years ago
5

OceanGate sells external hard drives for $260 each. Its total fixed costs are $30 million, and its variable costs per unit are $

210. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many.
a.
What is the firms' degree of operating leverage (defined as the ratio of the percent change in EBIT to the percent change in sales)?



Degree of operating leverage


b.
If the economy enters a recession, what will be the firm’s after-tax profit? (Enter your answer in millions.)



After-tax profit $ million
Business
1 answer:
Svetach [21]3 years ago
7 0

Answer:

a. in order to calculate this we must assume that the economy entered a recession:

degree of operating leverage = [($20 - $70)/$70] / [($260 - $520)/$520] = -0.7143 / -0.5 = 1.43

b. $14 million

Explanation:

strong economy:

total sales $520 million

<u>variable costs $420 million</u>

gross profit $100 million

<u>fixed costs $30 million</u>

EBIT $70 million

<u>income taxes $21 million</u>

net income $49 million

weak economy:

total sales $260 million

<u>variable costs $210 million</u>

gross profit $50 million

<u>fixed costs $30 million</u>

EBIT $20 million

<u>income taxes $6 million</u>

net income $14 million

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The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,000. The following items were not includ
k0ka [10]

Answer: $‭103,830‬

Explanation:

Ending Inventory = Inventory on hand + Purchased goods shipping point + Goods out on consignment + Goods sold FOB Destination

Selling price of goods is 140% cost of inventory so sales figures will have to be divided by 140% to get the inventory figure.

Purchased goods shipping point

= 4,200 + 200 = $4,400

Goods out on Consignment

= (5,600 / 140%) + 200 = $4,200

Goods sold FOB Destination

= (1,900 - 178) / 140% = $1,230

Ending Inventory

= 94,000 + 4,400 + 4,200 + 1,230

= $‭103,830‬

<em>Goods Purchased FOB Destination are not to be included as they are still the responsibility of the seller. Goods held on consignment should not be included either. </em>

7 0
3 years ago
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expeople1 [14]

Answer:

<h2>The answer in this case would be option A) from the answer lists or options of retrieval cue.</h2>

Explanation:

  • In general,retrieval cue involves an information retrieval process or mechanism which is primarily triggered by any identical previous memory or certain symbol/s which has been encountered by the brain previously.
  • Hence,based on retrieval cue,an individual can basically recall or register something based on a specific memory of any sign or symbol that is somehow related to the concerned object or thing that the individual is trying to remember.
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The term _____ refers to a business's obligation to maximize its positive impact and minimize its negative impact on society.
lilavasa [31]

The term Social responsibility refers to a business's obligation to

maximize its positive impact and minimize its negative impact on society.

<h3>What is the role of social responsibility in Business?</h3>

  • Social responsibility means that businesses, in addition to maximizing shareholder value, must act in a manner benefiting society, not just the bottom line.
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<h3>Extra keywords for social responsibility:</h3>
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  • Companies can act responsibly in many ways, such as by promoting volunteering, making changes that benefit the environment, engaging in ethical labor practices, and engaging in charitable giving.
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To learn more about Social responsibility, refer

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6 0
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Accounts Payable
geniusboy [140]

Answer:

company's total liabilities is

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